2017 (7) TMI 386

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....84 of the Central Excise Tariff Act, 1944 and Cenvat credit thereon is available as capital goods under the Cenvat Credit Rules, 2004. 2. For better upkeep and maintenance of HEMM's, the appellants were availing the services of maintenance of tyres used in various HEMM's. Accordingly, the appellant was availing cenvat credit of service tax paid during the period 2007-08 to 2011-12. 3. Proceedings were initiated by the department against the appellant which resulted in the issuance of the show cause notice dated 07.05.2012, wherein it was inter-alia, alleged that the aforesaid services were not utilised in or in relation to the manufacture of final products and therefore, cenvat credit therein is not admissible to the appellants. 4. The r....

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....get covered under the definition of inputs service. 5. The appellants have filed the present appeal against the aforesaid impugned order on the following grounds. 5.1. It is submitted by the ld. Counsel that the impugned service is covered under the 'means' part of the definition of the input service i.e. services of maintenance and management of tyres of HEMM used in the captive mines for mining of minerals, have a relation to the manufacture of the final products in the factory of the appellant, therefore cenvat credit cannot be denied to them. 5.2. In this regard, reliance is placed on the ruling in appellant's own case, vide decision reported at 2013 (289) ELT 377 (Tri. Del.) wherein it was held that tyres are used in the process of ....

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....cause notice dated 07.05.2012. There is no suppression of facts in the present case as all information was available with the department at all times, therefore there can be no occasion to invoke the extended period of limitation or impose penalty on the appellant. It is submitted that when the demand itself is not sustainable, then penalty is also not imposable and interest is not liable to be paid. Therefore, the demand of interest and penalty is liable to be set aside. 6. Heard the ld. AR for the Revenue who relied upon the impugned order. 7. Having considered the rival contentions, we are satisfied that the appellant have rightly taken cenvat credit in relation to input services for management and maintenance of tyres used in various ....